Windfalls yet to be certified as usable revenue

 

Instead of borrowing just over a million dollars to take care of repairs at the courthouse and jail and purchase cruisers and an ambulance, the Lawrence County Commissioners decided to wait to see if they can legally use windfalls to the county.

“If you have cash why borrow the whole amount,” Commissioner Les Boggs said.

The windfalls total more than $285,000 and come from a $250,000 gift from the Ironton Metropolitan Housing Authority (IMHA) and more than $35,000 refund from worker’s compensation.

Before the county can use the money, it must be certified by county budget commission, which will meet on Tuesday.

However, right now neither windfall is scheduled to be on the budget commission’s agenda.

“We have asked the commissioners to get us the enabling legislation for that ($250,000) where the housing authority has the authority to direct the proceeds of that sale to come to the county and city and secondly we are asking for a prosecutor’s opinion on what the county can do with that money once it gets it,” Chief Deputy Chris Kline said.

The check for $250,000 came after the commission aided in negotiations between the housing authority and LM Associates over the transfer of the Sherman Thompson Towers to LM, which has managed the high-rise senior complex since its construction in the 1970s. The housing authority owned the land, but in 2032 would also own the towers, according to an agreement. LM Associates wanted that reversion clause removed.

After the housing authority agreed to that request, LM Associates, which now owns the complex and the land, gave it $500,000, which the IMHA then divided between the county and the city.

The worker’s comp money is the result of the state organization refunding surpluses from contributions to the fund. The auditor’s office wants to know on what year the organization based their determination of the refund.

The county had been considering borrowing from the county treasurer’s Neighborhood Investment Program more than $1 million to pay for five new cruisers for the sheriff’s office at a cost of $146,000, a 4-wheel drive ambulance for the EMS station at Aid for $120,000, software upgrades at the 911 dispatching at a cost of $70,000, repairs at the courthouse for $72,000; and a new jail roof for $69,500.

On top of that the commissioners were considering refinancing three loans to reduce their interest rates. However, the prepayment penalty exceeded the savings that would have been realized from the refinancing.

Also the commission decided to reduce the number of cruisers for the sheriff’s office to three.

“You have to appreciate the fact that you are going to have three, but we are spending as much on maintenance on the older cruisers as we would for two more,” Sheriff Jeff Lawless said. “We are spending $80,000 just to keep them on the road. There comes a time when you can’t patch a cruiser anymore. The floorboard fell out of one and we welded some metal so officer didn’t fall through. The situation is becoming dire.”